Topic

Financial regulationi

Key developments in regulation of financial markets with a focus on those in Hong Kong and mainland China.

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  • UK’s Competition and Markets Authority has provisionally found that five big banks including HSBC shared ‘sensitive’ information about bond trades
  • Lenders could face fines in inquiry that has been ongoing since 2018

Three major Chinese developer including Vanke have moved a step closer to raising funds in the country’s capital market after Beijing restarted equity financing for the property sector late last year.

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Hong Kong’s new regulatory framework comes amid the city’s drive to become a global Web3 hub, despite other governments’ growing apprehension for virtual assets.

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After the Chinese currency’s recent weakening below 7 to the US dollar, foreign-exchange regulators say they will guide expectations, correct behaviours and curb speculation.

Vice-Premier He Lifeng oversaw the inauguration ceremony of China’s new regulator, the National Financial Regulatory Administration (NFRA), on Thursday in Beijing.

The fintech giant is expected to advance Hangzhou’s digital transformation, while also helping the city stage major international events like the 2023 Asian Games.

Hong Kong will become a hub that drives technological innovation and the yuan’s internationalisation by attracting offshore Chinese currency to support listings of hi-tech companies, bourse operator HKEX says.

A unit of Shanghai-based Greenland Holdings is planning to apply for a licence to trade assets including cryptocurrencies, NFTs and carbon credits, according to its CEO.

The Chinese Securities and Regulatory Commission ordered both companies in December to rectify ‘illegal operations’ and stop signing up new customers based in mainland China.

Binance.US executives worry that because Zhao was named in a lawsuit from the US Commodity Futures Trading Commission that the company may not be able to acquire certain licences, The Information reported.

PCAOB said it found significant deficiencies in first review of audits of mainland Chinese firms listed in the US, although issues are not expected to affect status of firms listed there.

Banking veteran Li Yunze has been appointed as the party chief of China’s new financial regulator, the National Financial Regulatory Administration, amid Beijing’s shift to prioritise financial stability.

The platform, called Cosmic, is meant to make it easier for financial institutions to share information on risky clients, and detect and deter scams, money laundering and terrorism financing.

HKMA Chief Executive Eddie Yue said crypto ‘regulations will be tight’ and those who do not like it are ‘welcome to go elsewhere’ in comments weeks ahead of new rules.

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Zhang Jin, the billionaire owner of commodities giant Cedar Holdings, has been arrested for illegal fundraising estimated at about 20 billion yuan (US$2.9 billion), according to officials and mainland Chinese media reports.

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The northbound trading of Swap Connect will help global investors to participate in the mainland interbank financial derivatives market, allowing them to hedge Chinese bond risk.

Poaching is on the rise to fill roles such as chief sustainability officer and sustainability director, with those changing jobs getting salary increments of up to 30 per cent, search firms say.

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San Francisco-based First Republic is the third midsize bank to fail in two months after Silicon Valley Bank and Signature Bank. The bank’s 84 branches in eight states will reopen as branches of JPMorgan Chase.

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Xuzhou will promote the use of the digital yuan in cross-border trade with Belt and Road countries using its connectivity via 18 regular cross-border railway lines to 21 countries in Europe and Asia.

Shenzhen-based Evergrande’s latest regulatory lapse underscores the company’s existential crisis, as it grapples with almost US$290.4 billion in liabilities.

Hong Kong’s licensed digital asset trading platforms are partnering with both local virtual banks and larger Chinese institutions, as the city’s new licensing regime allows for greater retail participation.

The CSRC is investigating Hong Kong-listed brokerage GF Securities for an inadequate review of shares issuance, amid the country’s full embrace of a market-oriented IPO system.